Wanxiang Group

No April Fools: Obama's Green Energy Stimulus is Officially a Joke

Submitted by Paul Chesser on Mon, 04/01/2013 - 10:27

Three Stooges photo President Obama’s alternative energy “stimulus,” administered through his Department of Energy by previous Secretary Steven Chu, had already become a joke because of the failures and foibles of so many recipients of Recovery Act funds. But now – as though officially commemorating the absurdity of this historically bad U.S. government program – one of its bankrupt beneficiaries has changed its name from one of simplicity to one of mockery.

Electric vehicle battery maker A123 Systems has changed its name to B456 Systems. Incorporated.

Taxpayer-Supported Fisker Looking to China, Like A123

Submitted by Paul Chesser on Thu, 02/21/2013 - 12:30

Stimulus déjà vu-lishness lurks: Another “green” tech company that received hundreds of millions of taxpayer dollars is financially troubled, seeks a buyer (or their preferred term – a “partner”), and China is ready to swoop in and buy up the remains on the cheap. And the same two Republican senators who slammed the last deal that went down like this are sickened again.

The first time this happened it was electric car battery maker A123 Systems that set up a deal to get $249 million (plus other multimillion dollar grants) from U.S. taxpayers, who then got left holding the bag when executives ran the company into bankruptcy, made off with some sweet bonuses, and left the techno-carcass for China’s Wanxiang Group to buy and learn about American battery innovation from.

Sale of A123 Systems to Chinese Gets Final U.S. Approval

Submitted by Paul Chesser on Tue, 01/29/2013 - 17:01

A123 Systems has received approval from the Committee on Foreign Investment in the United States for the controversial bankruptcy sale of most of its taxpayer-funded technology and assets to China-based Wanxiang, according to a statement released by subsidiary Wanxiang America Corp.

The authorization was the final major hurdle needed to complete the transaction. A123 had been granted $249 million to refurbish two plants in Michigan for battery production, another $30 million as a subcontractor for another stimulus-funded wind energy storage project, and various other grants and contracts by state and federal governments. But A123’s executives, while making sure their own bank accounts were well-taken care of, ran the company into the ground and now Wanxiang will reap whatever technology value is left, for cheap.

2012: The Year of Taxpayer ‘Green’ Waste

Submitted by Paul Chesser on Mon, 12/31/2012 - 09:50

Obama Invesco The past year was a dismal one for the passé idea that government would use taxpayer dollars responsibly, and that was nowhere more evident than with President Obama’s initiatives to promote “clean” energy technology companies and projects with so-called “stimulus” funds and other public money. NLPC reported extensively on some of the most egregious examples.

Will Fisker Be Sold to the Chinese Now Too?

Submitted by Paul Chesser on Fri, 12/14/2012 - 08:40

This story has been updated at the end.

Fisker Automotive finally received a good review for the only model it has produced – the highly subsidized, widely panned and sometimes burned extended-range electric Karma – from automobile aficionado Jay Leno.

But that didn’t prevent the recipient of $193 million out of President Obama’s green stimulus from laying off another 40 workers. According to the Orange County Register, Fisker spokesman Roger Ormisher said the company – which had been awarded a $529 million loan guarantee by the Department of Energy only to see it halted due to unspecified shortcomings – had to halt production because its bankrupt supplier, A123 Systems, left them with a low battery inventory. Ormisher said Fisker has laid off about half its employees since February.

Chinese Company Wins Auction for Taxpayer-Backed A123 Systems

Submitted by Paul Chesser on Mon, 12/10/2012 - 14:10

The auction for the assets and business of green stimulus recipient A123 Systems has been won by Chinese auto parts manufacturer Wanxiang Group, which aggressively sought the electric vehicle battery maker at least since the summer.

The successful bid – reported to be about $260 million – follows weeks of warnings by the U.S. government, congressmen and a group of former military and other leaders that transfer of the Massachusetts-based company would compromise American jobs, technology and security. The auction attempts to address some of those concerns, as Wanxiang was not awarded any of A123’s contracts with the U.S. Department of Defense. Instead the company’s “government business,” including all its military contracts, was awarded to Illinois-based Navitas Systems.

Opposition Grows to Sale of A123 Systems to China

Submitted by Paul Chesser on Mon, 12/03/2012 - 13:38

The Chinese government, unsurprisingly, has approved a potential sale of stimulus-funded ($279 million-plus) A123 Systems to one of its own automobile parts manufacturers, should the Wanxiang Group’s bid be the highest this week for the bankrupt electric vehicle battery maker.

That was the easy part.

So far Republican Sens. Charles Grassley (Iowa) and John Thune (S.D.) have repeatedly raised questions and concerns about the possible transfer of A123’s business, jobs and technology from the U.S. – where taxpayers have thrown in approximately $132 million only to see many times that amount in losses since its 2009 initial public offering – to China. They’re no longer the only voices speaking out against the transaction.

Payouts to Bankrupt A123 Systems Likely to Continue

Submitted by Paul Chesser on Mon, 11/19/2012 - 12:26

A reply by stimulus recipient ($115 million of a $249 million grant paid out) A123 Systems to an inquiry by Republican Sens. Charles Grassley (Iowa) and John Thune (S.D.) showed the electric vehicle battery manufacturer received nearly $1 million in Recovery Act funds on the day it declared bankruptcy.

The money flow is not likely to stop.

A123 as a whole, or in pieces, is going to be sold to the court-approved buyer(s). That is likely to be either Johnson Controls, which is the lead bidder for the company’s automotive business, or Wanxiang Group, which wants to buy the whole company. A123 had an agreement to transfer up to 80 percent of the company’s ownership to the China-based automotive parts manufacturer over the summer, but its bankruptcy filing on Oct. 16 – with Johnson Controls as the new automotive assets purchaser – nullified its agreement with Wanxiang.

A123's Executives Get Their Richly Undeserved Bonuses

Submitted by Paul Chesser on Tue, 11/13/2012 - 09:00

President Obama’s penchant for flushing taxpayer money down the green energy toilet lives at least another four years, and his crony supporters continue to benefit.

The latest example is the pending sell-off of assets by bankrupt A123 Systems, which was awarded upward of $279 million in stimulus funds, plus other assorted government grants and contracts. The top executives who presided over its failure – and supported the president’s cap-and-tax initiatives early in his term – are likely to receive millions of dollars in bonuses, thanks to their scheming earlier this year and a bankruptcy court judge.

Chinese Back in the Picture to Buy Bankrupt A123 Systems

Submitted by Paul Chesser on Wed, 10/31/2012 - 12:10

Is it back to China for Obama-boosted battery maker A123 Systems?

In August the Massachusetts stimulus recipient (more than $279 million, plus a bundle of other government contracts) announced that Wanxiang Group would infuse the failing company with quick cash as part of a plan to assume as much as 80-percent ownership. A barrage of questions and concerns followed – most prominently from Republican Sens. Charles Grassley (Iowa) and John Thune (South Dakota) – about the logistics of the deal, the potential relocation of taxpayer-funded jobs overseas, and the protection of U.S.-financed technology. Required approval by both the Chinese and U.S. governments seemed to be a high hurdle.